ATTITUDE OF CONSUMERS TOWARDS PUBLIC UTILITIES. (A CASE STUDY OF POWER HOLDING COMPANY FORMERLY CALLED NEPA)

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY                  

This research work is aimed at determine attitude of consumers towards public utilities.

The power holding company (formally called NEPA) was established by Decree No 24 of 1^st April 1972 with the amalgamation of Electricity corporation of Nigeria (ECN) and Niger Dan Authority (NDA).  Power Holding Company formerly called NEPA was empowered to maintain an efficient coordinated and economic system of Electricity supply to all the Nooks and Crannies of the nation.  Major power stations namely Yola, Delta and Afam thermal power station of Kanji power station serving more than two million customers nationwide.  They propelled the nations technological and industrial growth, Power Holding Company formerly called NEPA has become the fastest and biggest growing electricity industry in Africa and in deed the developing world with impending condition like he ever-rising consumers debts vandalization of NEPA installation, high cost of maintenance inadequate gas supply, low water level at the hydro power station, high cost of foreign exchange and the abysmally low tariff regime.

Power Holding Company formerly called NEPA has always striven to meet its distribution and marketing of stable electricity to its numerous residential commercial and industrial customer against all odds.  Inspite of some of its familiar operational shortcomings, PHC has made gaint – strides in the production and marketing of Electricity to the nation and beyond.  A principal beneficiary of PHC. Extended electricity programme is the Republic of Niger under agreement with NIGELEC (Niger Electric Company) that country’s electricity monopoly.

Similarly, in Sept 1996 an undertaking was signed between PHC and commercial Electrique Du Benin(CEB) which is responsible for the production transportation of electric energy in the Republic of Benin and Togo.  Nigeria Government Policy on the development of public corporation was clearly defined in the year 1970/1974 Second National Development Plan document as follows:

“Statutory corporation and state owned company have become an important tools to public entertainment in the development process.  Their primary aim is to stimulate and accelerate national scarcity and structural defects in private business organization.  There are also basic consideration arising from the dangers of leaving vital sectors of the national economy to the wimps and caprice of the private sector often with the direct and remote control of foreign large scale industrial companies.  Public corporation are therefore crucial in Nigerians quest true National economic independence and self reliance.  The Power Holding Company formerly called NEPA being one of the statutory corporations is a household name.

Presently, the corporation is gradually bringing a lot of re-thinking into the minds of Nigerian entrepreneur both private and public from making them to actually appreciate the modern market concepts, a management

orientation which hold the key task of the organization to deliver the desired satisfactory service more effectively and efficiently.

Meanwhile, one of the implication of the concepts is that the consumers in any market segment will favour the offer of the organization who come close to satisfying the consumer’s particular needs and wants.  Therefore, it is necessary for an organization to seek to understand customers preference, habits behaviour and criticism and to do this, the organization has to research into those things that attract consumers interest and influence their behaviour.

Moreover, setting up an organization for the purpose mentioned before, an organization should better hold it responsible that survival of the organization depends much on the attitude of consumers towards the organization and its product or services.

However the main priority of the management of Power Holding Company formerly called NEPA at Enugu metropolis is to identify influences on the attitude of consumers towards the organization the knowledge of variables, the consumers opinions, feelings and ideas about their services will help management of the marketing mix in other to achieve their objective. Also, it will enhance growth, expansion and to ensure greater rate of returns in public utilities.  PHC. As a monopolist service industry recognize the important variable and even exploring other means of providing better services.  Discussions on PHC features regularly on the pages of the periodical and dallies as well, as on the Radio and Television Programme.  The frequency at which the newspaper and margarines publish materials on PHC tends to portrary the importance of electricity industry economic development.

Finally, this research work is a conscious effort towards X- raying the overall customers attitude in relations to productivities and efficient power supply of electricity often referred to as heart beat of the nation.

1.2            STATEMENT OF PROBLEM

This study is intended to find out the attitude of consumers towards Public utilities.  The growth and survival of an organization such as NEPA is paramount.  This positive growth achievement of organizational goal is anchored on the effective performance of the organization.

The problem is to determine the people’s response to price of public utilities positively or negatively. They respond negatively when PHC give much bills to consumers, which they did not expect.

Determine consumers view about Power Holding Company formerly called NEPA and also determine the extent to which public demand PHC services.

    1.3            OBJECTIVES OF THE STUDY

The persistent public out cry over the authority’s erratic power supply juxtaposed with the numerous excuse offered by the Authority, some of which tends to expose the consumers to blame for the cause of the matter while the consumer accuses PHC of inadequate service and the Authority also make counter accusation on the consumers for what it describes as their non co-operative attitude.

It is in the face of this controversy that the researcher embarked on this project with the following.

1.   To determine the ideas, attitude and consumers view about PHC at Enugu metropolis.

1. To determine the extend to which service of PHC is demanded compared to other public utilities
2. To find out the impression consumer have about the price of organization service on relations to its quality.
3. To analyse ways of wining consumers favourable attitude and there improve the share among other service.

1.4       SCOPE OF THE STUDY

This study is limited to finding out how consumers rate or regards services rendered by public corporation with special reference to Power Holding Company formerly called NEPA Enugu office.

1.5   LIMITATION OF THE STUDY

During the course of writing the project topic the research encountered some problem associated with finance, time and data collections.

FINANCE:    Finance is the background of every plan going by the present economic hardship facing the entire country, I have limited finance which will not also found it difficult to purchase much of my requirement so I could only carry out the research works much, my purpose could carry me.

TIME: One of the greatest shortcoming was time factor for the mere fact that I am a student taking recognizance of the academic region facing me as a final year student and it is incumbent on me to attend classroom lectures carryout assignment, writing of term papers.  Therefore I could not find it convient in completing such until this task, particularly in the area of field survey, which involves going out in Enugu metropolis.  Data collection.

DATA COLLECTION: Collection of information of a several from actual users may not be willing to give reasons, why they use it, where as some will not want to disclose their income level of relevant information about the information themselves in cost case, the deflect appointment.

1.6  RESEARCH HYPOTHESIS

Hypothesis according to Webster means “A presentation put forward

a basis for reasoning a sub-position formulated from proved data and presented as a temporary explanation of occurrence as science in order to establish a basis for future use.

Ho:    Power Holding Company formerly called NEPA, service, price and     quality are not acceptable to consumer.

H1:   Power Holding Company formerly called NEPA, service, price and quality are acceptable to consumer.

Ho:    Consumer attitude towards the service of Power Holding Company formerly called NEPA are not favourable.

H1:    Consumer attitude towards the service of Power Holding Company formerly called NEPA are favourable.

1.7      SIGNIFICANCE OF THE STUDY

It will also be seen as a reference point for students who might be carrying out research  on similar or related topic.  It will also help the government to assess the services ability of Power Holding Company formerly called NEPA and know whether to constitute similar or parallel organization.  It will help the Power Holding Company Management to identify areas that they are lacking and effective ways of increasing performance for customer satisfaction.

REFERENCES

ADEMIRAM, OKE (1986)     The effect of STAM ABA, the Nigerian Economist magazine Nov. 17,

AZUBUIKE OGBONNA: (1994  A monthly magazine New letter of the

Nigerian postal service vol2. No3.

ADOSHUM, OLUWOLE (1993) A monthly magazine New letter of the

Nigerian Postal Service No 5 Vol. 1 August.

PAGES 73

PRICE 3000